Global distressed properties to rise
In the RICS Global Distressed Property Monitor, three in four people said they expected rising levels of foreclosure next quarter.
Distressed property is expected to rise at the fastest pace in the Republic of Ireland, Southern Europe and the United Arab Emirates, while agents in the UK, Hungary and France also anticipate increasing levels.
Supply is expected to outstrip demand in 60% of countries surveyed. This contrasts to approximately 40% in Q2.
Simon Rubinsohn, chief economist at RICS, said: “Around the world, a further rise in the Q4 supply of distressed property is widely expected.
“So far, however, the worst fears of the market have yet to be realised with banks generally managing down their real estate exposure carefully.
“The deteriorating picture in the latest RICS report is most pronounced in the Southern European countries, which remain at the centre of the euro crisis.
“Meanwhile investor appetite for distressed assets may be cooling a little in the face of continuing uncertainty in financial markets and the worsening economic news flow.”